Alro Group, the largest aluminum producer in Romania and one of the largest aluminum producers in Europe, reported a RON 253.6 mln (EUR 52.4 mln) net profit in the first half of the year, three times more than that recorded in the same period last year.
And this was despite its sales decreasing by 10%, to RON 1.36 bln (EUR 280 mln), Ziarul Financiar reported.
The main driver that pushed the company's profit up was "related to the approval of the application of the EU compensation scheme -ETS for 2019 and the first six months of 2020, on the one hand, and the sale of emission rights, on the other."
In other words, the Government disbursed to the company 15% of the money spent by Alro in 2019 and half of 2020 to purchase emission rights.
Also, the company's outlook improved as a result of the drop in the price of electricity.
As of March, before the coronavirus outbreak, the company's trade union was insistently asking the Government to make the respective payments, warning that, otherwise, the company would be closed down.
Alro recorded losses of RON 68 mln (EUR 14.3 mln) in 2019, compared to a net profit of RON 235 mln (EUR 50 mln) in 2018, as its turnover declined and the costs increased.